The country is experiencing severe power outages due to the prolonged shutdown of Summit Group’s liquefied natural gas (LNG) terminal, which has been out of operation for nearly three and a half months. This situation has led to a daily shortfall of around 1,200 megawatts in power generation.
Adding to the problem, India’s Adani Group has reduced its power supply by approximately 500 megawatts due to outstanding arrears.
Technical problems at the Barapukuria Coal-Fired Power Plant, issues at the Matarbari Coal-based Thermal Power Plant, and the S Alam Banshkhali Power Plant have further strained the country's power supply, resulting in increased load shedding, according to the Bangladesh Power Development Board (BPDB).
The BPDB report shows that the country's average daily electricity demand is about 16,500 megawatts, while the production capacity is approximately 27,000 megawatts. However, actual daily power generation is only around 14,500 to 15,000 megawatts, causing a shortfall of about 1,500 megawatts each day.
BPDB Chairman Rezaul Karim told reporters on Monday that the closure of Summit's LNG terminal is the primary cause of the increased power outages. He said, “The shutdown of the LNG terminal has reduced gas-based power plant production by 1,200 to 1,250 megawatts daily. This is the main reason for the current load shedding crisis.”
In response to the reduced gas supply, there has been a shift toward oil-based power generation, significantly increasing production costs. Currently, over 4,000 megawatts of power are being generated from furnace oil, according to BPDB sources.
Petrobangla data shows that the daily gas supply capacity is about 3,100 million cubic feet (MMCF), against a demand of around 4,000 MMCF. This includes 1,100 MMCFD from LNG imported through terminals operated by Excelerate Energy LNG Terminal and Summit Group LNG Terminal in Moheshkhali, Cox's Bazar.
The Summit terminal has been closed since May 27 due to technical issues, with only about 600 MMCFD of gas being supplied through the Excelerate terminal, reducing the total gas supply to 2,600 MMCFD. Despite a daily demand of 2,300 MMCF for power generation, the supply has fallen to below 850 MMCFD.
The power crisis is affecting industrial production, prompting a recent meeting between the Dhaka Chamber of Commerce and Industry (DCCI) and power, energy, and mineral resources adviser Fouzul Kabir Khan.
Despite numerous attempts, officials from Summit Group declined to comment on the delay in reopening the LNG terminal. Petrobangla sources have indicated that Summit is facing significant financial losses due to the terminal's closure and is working to resolve the technical issues.
Although Summit is incurring losses, under the contract terms, they are still required to pay capacity charges to the government, even without supplying gas. This is resulting in financial losses for the government and economic strain on the country.
Petrobangla Chairman Zanendra Nath Sarker said that underwater work at the Summit terminal is complete, with only some upper structure work remaining. He expressed hope that the terminal could be operational within a few days, weather permitting.
While load shedding is less severe in Dhaka and other major cities, it is widespread in rural areas and smaller towns. The power shortages are causing significant hardship, affecting the incomes of battery-operated rickshaw drivers, rice mill workers, and other low-income groups. Livestock farmers are also facing financial difficulties due to the ongoing power crisis.
BPDB data reveals that production at the 1,200-megawatt Matarbari power plant has decreased to 850 to 900 megawatts due to alleged irregularities and corruption involving several senior officials, who have reportedly fled. The plant is also currently unable to purchase coal due to import issues.
Similarly, the 1,200-megawatt SS Power Plant under S Alam Group in Bashkhali is producing only 600 to 612 megawatts, with one of its units shut down. Efforts to reach responsible officials for comment have been unsuccessful.
Additionally, the third unit of the 525-megawatt Barapukuria power plant in Dinajpur has stopped production four days after its restart. Barapukuria power plant’s Chief Engineer Md Abu Bakkar Siddique reported that the unit, which previously supplied 190-200 megawatts daily to the national grid, is now non-operational due to technical failure.
The Chinese contractor has indicated that it will take two weeks to restart the unit.
